More Employed Millennials Living At Home Than Ever Before
I can remember the summer of 2013, I was fresh out of my graduate studies at New York University and wondering if I would have to return home to Detroit if it took too long to find full-time work.
With my head set on the media industry, Detroit wasn’t exactly as appealing as the Big Apple and the thought of returning home also brought a small stench of defeat. But that attitude is quickly disappearing among millennials as more and more Generation Yers chose to stay at home with mom and dad, even after beginning their careers.
With improvements in the economy and falling unemployment rates, more millennials have jobs than they did five years ago. However, more millennials are living at home now than in the past.
A study from the Pew Research Center revealed that 42.4 million millennials live with their parents, an increase from 41.9 percent in 2010. But the real startling comparison comes from the unemployment rates during this same time. From 2010 to now, the unemployment rate for 18 to 34 year olds has fallen from 12.4 percent to 7.7 percent.
The decision to live with parents during adulthood is normally due to need and not want based, but this mindset is shifting. While part of the increase is easily attributed to the fact there are simply more millennials now than in 2010, it also has to do with the amount of student loan debt they carry.
Today’s generation has a much higher amount of student loan debt (raises hands) than previous generations with the rising cost of college and more people opting for graduate degrees. Young to middle-aged adults may find solace in not spending a third of their income on rent and instead paying off loans before one ends up paying double the amount.
While this is great for those saving, apparently the housing market will suffer due to the number of young adults opting out of home ownership.